Section 12AA of the Income Tax Act

The decision most relied on for Section 12AA is ACIT v. Ahmedabad Urban Development Authority (143 Taxmann.com 278), cited in 390 of the 4,243 judgments on BharatTax that turn on this section.

Leading authorities on Section 12AA

ACIT v. Ahmedabad Urban Development Authority
143 Taxmann.com 278 · 2022 · Supreme Court
390
citing judgments

If activities for the advancement of general public utility are carried on as a business, income from such activities is not exempt under Section 11, even if the profits are utilized for the main charitable object. The argument that profits from general public utility activities can be ploughed back to charity to maintain exemption is not a good law.

Addl. CIT v. Surat Art Silk Cloth Manufacturers Association
121 ITR 1 · 1980 · Supreme Court
328
citing judgments

A charitable institution, whose predominant object is general public utility, can engage in non-charitable activities yielding incidental profits, provided these profits are deployed to achieve the dominant charitable object. A subsidiary object, if ancillary to the primary charitable purpose, does not negate the institution's charitable character.

Sole Trustee, Loka Shikshana Trust v. CIT
101 ITR 234 · 1975 · Supreme Court
323
citing judgments

This case defines 'education' under Section 2(15) of the Income Tax Act as systematic instruction, schooling, or training given to the young for preparation for the work of life. It clarifies that 'education' in this context has a narrow meaning, not extending to every acquisition of further knowledge.

Escorts Ltd. v. UOI
199 ITR 43 · 1993 · Supreme Court
267
citing judgments

A statute should not be construed to permit double deduction for the same expenditure unless specifically provided by law.

Queen’s Educational Society v. CIT
372 ITR 699 · 2015 · Supreme Court
152
citing judgments

An educational institution that generates a surplus does not automatically lose its charitable status or cease to exist solely for educational purposes. This is true if the surplus is reinvested for its educational objectives, and the predominant object test determines if the institution's primary aim is education or profit.

Union of India v. Exide Industries
425 ITR 1 · 2020 · Supreme Court
146
citing judgments

The provision for leave encashment is allowable as a deduction only on an actual payment basis under Section 43B(f) of the Income Tax Act, 1961. The Supreme Court upheld the constitutional validity of Section 43B(f).

Sree Meenakshi Mills Ltd. v. Commissioner of Income Tax
31 ITR 28 · 1957 · Supreme Court
137
citing judgments

Expenditure incurred for commercial expediency, even without a direct or immediate benefit but indirectly facilitating business, is deductible as laid out wholly and exclusively for trade. The scope of reference jurisdiction under Section 66 is limited to questions of law, allowing challenges to Tribunal findings of fact only if they are perverse, unreasonable, or lack evidence.

R.B. Jodha Mal Kuthiala v. CIT
82 ITR 570 · 1971 · Supreme Court
131
citing judgments

Tax laws must be interpreted reasonably and in consonance with justice, even though equitable considerations are generally irrelevant in their interpretation.

Sarvodaya Charitable Trust v. ITO (Exemption)
125 Taxmann.com 75 · 2021 · High Court
129
citing judgments

The filing of Form 10B for claiming exemption under sections 11 and 12 is directory, not mandatory. A delay in filing Form 10B can be condoned, and exemption cannot be denied solely on this ground if the assessee satisfies other conditions and shows sufficient cause.

ACIT v. Surat City Gymkhana
300 ITR 214 · 2008 · Supreme Court
125
citing judgments

Once an institution receives registration under Section 12AA, the Assessing Officer must compute its income as per Section 11, focusing only on the application of income and not re-examining the charitable nature of its activities. The Supreme Court also clarified the meaning and scope of 'general public utility' under Section 2(15).

Judgments on Section 12AA

Dr. B.G. Memorial Trust, Kolkata vs. ITO, Ward-1(2), Exemption, Kolkata

The appeal of the assessee is treated as allowed for statistical purposes

ITA 680/KOL/2024[2013-14]Status: DisposedITAT Kolkata13 Sept 2024AY 2013-14

Bench: Shri Sanjay Garg & Shri Sanjay Awasthii.T.A. No.680/Kol/2024 Assessment Year: 2013-14 Dr. B. G. Memorial Trust..…….…....…………….......…....………....Appellant 6/1, Sarat Chatterjee Avenue Rabindra Sarovar, Kolkata – 700029. [Pan: Aaatd5235A] Vs. Ito, Ward-1(2), Exempt, Kolkata...........................................…..…..... Respondent Appearances By: Shri S. M. Surana, Ar & Sunil Surana, Ar, Appeared On Behalf Of The Appellant. Shri Manas Mondal, Addl. Cit, Sr. Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : June 27, 2024 Date Of Pronouncing The Order : September 13, 2024 आदेश / Order संजय गग", "या"यक सद"य "वारा / Per Sanjay Garg: The Present Appeal Has Been Preferred By The Assessee Against The Order Dated 18.03.2024 Of The National Faceless Appeal Centre [Hereinafter Referred To As ‘Cit(A)’] Passed U/S 250 Of The Income Tax Act (Hereinafter Referred To As The ‘Act’). 2. The Brief Facts Of The Case Are That The Assessee Was Registered As A Charitable Institution U/S 12 Of The Act. The Assessee Claimed Deduction Of Income Being A Charitable Institution U/S 11 Of The Act. During The Assessment Proceedings, The Assessing Officer Noted That The Cit(Exemption) Vide Order Dated 22.02.2016 U/S 12Aa(3) Of The Act Has Withdrawn & Cancelled Registration Granted Earlier To The Assessee-Trust. In View Of The Said Cancellation Of Registration, The

Section 11Section 12Section 12ASection 250Section 40Section 40A

Ideal Education Trust, Vadodara vs. The Income Tax Officer, Ward Exemption, Vadodara

In the result, the appeal of the assessee is treated as allowed for statistical purposes

ITA 589/AHD/2024[2011-12]Status: DisposedITAT Ahmedabad10 Sept 2024AY 2011-12

Bench: Shri T.R. Senthil Kumar & Shri Makarand V. Mahadeokarआयकर अपील सं /Ita No.589/Ahd/2024 "नधा"रण वष" /Assessment Year : 2011-12 Ideal Education Trust The Income Tax Officer 1, Indra Duplex, बनाम/ Ward Exemption, Harni Road, Baroda Vadodara V/S. Baroda – 390 022 (Gujarat) "थायी लेखा सं./Pan:Aaati 5704 P (अपीलाथ"/ Appellant) ("" यथ"/ Respondent) Assessee By : Shri Samir Parikh, Ar Revenue By : Smt. Trupti Patel, Sr.Dr सुनवाई क" तार"ख/Date Of Hearing : 05/09/2024 घोषणा क" तार"ख /Date Of Pronouncement: 10/09/2024 आदेश/O R D E R Per Shri Makarand V. Mahadeokar, Am: This Appeal By The Assessee Is Directed Against The Order Of The Ld.Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre (Nfac), Delhi [Hereinafter Referred To As “Ld.Cit(A)” ], Dated 26.02.2024, For The Assessment Year (Ay) 2011-12 Arising Out Of Assessment Order Passed By The Assessing Officer (Hereinafter Referred To As “Ao”) Under Section 143(3) R.W.S. 147 Of The Income Tax Act,1961 [Hereinafter Referred To As “The Act”]. Ideal Education Trust Vs. The Ito-Ward Exemption Asst. Year : 2011-12

For Appellant: Shri Samir Parikh, ARFor Respondent: Smt. Trupti Patel, Sr.DR
Section 10Section 12ASection 143(2)Section 143(3)Section 148Section 48Section 69A

Deputy Commissioner of Income Tax, Exemptions Circle, Chennai, Income Tax Department vs. The Indian Institute of Engineering Technology, Chennai

In the result the appeal of the Revenue dismissed

ITA 679/CHNY/2024[2012-13]Status: DisposedITAT Chennai30 Aug 2024AY 2012-13

Bench: Shri Mahavir Singh & Shri S.R. Raghunathaआयकर अपील सं./Ita No.679/Chny/2024 िनधा;रण वष; /Assessment Year: 2012-13 The Dy. Commissioner Of The Indian Institute Of Engineering Income Tax, Vs. Technology, Exemptions Circle, 363, Arcot Road, Kodambakkam, Chennai. Chennai – 600 024. [Pan: Aaatt 2768C] (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथH की ओर से/ Assessee By : Shri R. Vijayaraghavan, Advocate JkथH की ओर से /Revenue By : Shri N. Sanjay Gandhi, Jcit सुनवाई की तारीख/Date Of Hearing : 11.06.2024 घोषणा की तारीख /Date Of Pronouncement : 30.08.2024 आदेश / O R D E R Per S.R. Raghunatha, A.M : This Appeal By The Revenue Is Arising Out Of The Order Of The Commissioner Of Income Tax (Appeals), (Nfac), Delhi [Hereinafter “Cit(A)] In Din & Order No.Itba/Nfac/S/250/2023- 24/1059500064(1), Dated 09.01.2024. The Assessment Was Framed By The Assessing Officer For The Assessment Year 2012-13 U/S.143(3) Of The Income Tax Act, 1961 (Hereinafter The ‘Act’), Vide Order Dated 20.03.2015. :- 2 -: 2. There Is A Delay Of 06 Days In Filing The Appeal By The Revenue.

For Appellant: Shri R. Vijayaraghavan, AdvocateFor Respondent: Shri N. Sanjay Gandhi, JCIT
Section 10Section 11Section 12ASection 13(1)Section 13(1)(c)Section 13(1)(d)Section 143(3)

Assistant Commissioner of Income Tax, Cirle-1, (Exemptions), Bengaluru vs. Bangalore Development Authority, Bengaluru

In the result, the appeal is partly allowed for statistical purposes

ITA 208/BANG/2024[2008-09]Status: DisposedITAT Bangalore30 Aug 2024AY 2008-09

Bench: Shri Soundararajan K.Assistant Commissioner Of Bangalore Development Authority, Income Tax, Circle-1, T. Chowdaiah Road, Kumarapark (Exemptions), Bengaluru Vs. West, Seshadripuram S.O., Bangalore North, Bangalore-560020 Pan – Aaalb0060D (Appellant) (Respondent) Assessee By: Sri. T. Srinivasa, Ca Revenue By: Sri. D.K. Mishra, Cit Dr Date Of Hearing: 06.08.2024 Date Of Pronouncement: 30.08.2024 O R D E R Per: Soundararajan K., J.M. This Is An Appeal Filed By The Revenue Challenging The Order Of The Nfac, Delhi Dated 8.12.2023 In Respect Of The Assessment Year 2008-09. 2. Brief Facts Of The Case Are That The Assessee Is A Statutory Body Under The Government Of Karnataka & They Are Regular In Filing Their Return Of Income. The Assessee Also Got Registration Under Section 12Aa Of The Act W.E.F. 1.04.2003. During The Assessment Year 2008-09, The Assessee Filed Their Original Return Of Income On 25.09.2008 & Claimed Exemption Under Section 11 & 12 Of The Act. The Assessee Also Filed The Audit Report Alongwith The Return Of Income. The Return Was Processed & The Ao Accepted The Same. Thereafter, The Case Was Selected For Scrutiny Under Cass & Notice Was Issued On Various Dates & The Assessee Also Appeared & Filed Their

For Appellant: Sri. T. Srinivasa, CAFor Respondent: Sri. D.K. Mishra, CIT DR
Section 11Section 12ASection 147